Egg Supply Business: If you have good marketing skill you will love this business. The amount of startup depends on your finances, business plan. Although not gender based you will find many women in this venture.
Success depends on the size of your customer base, implementation. To build a customer base you need hard-work, networking, dedication. It is important to locate a good poultry farm with large number of birds. Major logistics are purchase of eggs, storage and transportation.
Steps to Start Egg Supply Business
- Secure funding
- Have where to store the eggs
- Buy some empty paper egg crates
- Build a customer base
- Secure transportation-buy or lease truck
- Find a poultry egg production farm
- Bulk purchase the eggs
- Sell to customers
The business format is simple, easy to implement. You can don’t need lots of cash to venture into the business, startup is as low as N70, 000 naira ($200) to N2 million.it is possible to earn¼ profit margin on supplies.
The business is highly saturated, competitive and demanding. Success depends on your marketing skill and ability to find customers. Transportation costs reduces the profit margin. Make sure you source directly from farms, avoid open market eggs.
Startup Costs Egg Supply Business
Startup costs depends on the size and scope of the enterprise. Large egg suppliers buy heavy-duty vans or buses for easy movement of eggs. They also rent a shop, pay driver, store attendant, delivery boy. This may cost several million naira including cost of eggs and inventory.
- Used vans or buses – N2 million naira
- Store lease – N150,000 a year
- pay driver – N360,000 a year
- store attendant – N240,000 a year
- cost of eggs at 850 each 100 crates- N85,000
Secure funds through target savings or borrow from friends and family. To reduce costs use your vehicle for transportation. Start small then gradually build a customer base to and meet the demand. Other funding sources are small business loans, cooperatives, crowd funding.
Equipment needed are delivery van or bus, paper egg crates. Others are lockup shop, weight scale and basic store equipment.
- delivery van or bus
- paper egg crates
- lockup shop (optional)
- weight scale
- basic store equipment
|Equipment||Customers||Staff Requirements||Egg Sizes|
|Delivery van||Egg retailers||Driver||Large|
|Paper crates||Grocery stores||Bus Boy||Medium|
|Lockup Store||Supermarkets||Store Attendant||Small|
|Store equipment||Market women||Owner of Business|
Egg Supply Business Delivery Van
To start egg supply business you need a few equipment. The primary equipment is the delivery van. This effectively reduces transportation costs on delivery.
Some small distributors use their personal cars or hire transport. This will cut into your profit margin. Any delivery van with good capacity will do nicely. Average cost of a used bus is from N1 million Nair to N 2.5 million
Paper or Plastic Crates
You should determine either paper or plastic crates to convey the eggs. Most distributors use only paper crates because they are cheaper, recyclable and handy. Plastic crates are more durable than paper however impracticable.
Lease a Store
Some egg suppliers work out of a small store. The store should be secure from rats or rodents with good door. Some stores have shelves while others place them on the ground.
Find a Layer Poultry Farm
Make sure you find a farm with large number of layer hens. The price of eggs are generally fixed based on current prices, size of eggs. Most farms sell a minimum of 10 crates to wholesalers.
Things to consider is distant of farm to your store and market base. The further the farm the more money you spend on transportation.
As stated earlier the amount of profit is about ¼ of each crate supplied. For instance if the crate is N1000 naira you can make 250 per crate. This is just a rough estimate to show the earning potential.
Therefore the more crate you can afford to buy and sell the higher your profit margin. Other things to consider are transportation costs, size of eggs.
The price of eggs differ based on size. You will find three sizes large, medium small eggs. The small eggs are the cheapest while the larger eggs costliest.
Some supplier mix the medium with small eggs for better profit. However good practice is to separate the eggs according to size and price.
Another effective marketing strategy is to print business cards. Most retailers already have suppliers with years of track record.
To enter the market you can leave your card with retailers in the off chance the supplier disappoints them. The card also creates awareness, offer easy contact through your phone number.
Marketing is the most important aspect of the business. Without an effective marketing strategy your business will fail. Marketing involves word of mouth, advertisement, door to door.
Other strategies includes discounts, pay latter, and better prices. You need a complementary card or storefront.
Marketing Strategy for Egg Supply Business
- word of mouth
- door to door
- credit line
- offer better prices
- use complementary card
- sell from your own store
Sell to Retailers
Your target market are egg retailers, fast food restaurant, bakeries. Approach provision store owners, cooked noodles sellers, market women, hotels, canteens.
Who our Your Customers
- egg retailers
- fast food restaurant
- grocery stores
- provision store owners
- cooked noodles sellers
- market women
Most egg suppliers work alone or with a bus driver. The business is easily a one man show however you need someone to help in loading/offloading the eggs.